TAIPEI (Taiwan News) — Taiwan’s manufacturing sector continues to surge on robust AI and semiconductor demand, with September output marking a record high and setting the stage for a potentially record-breaking year.
The Ministry of Economic Affairs said Taiwan’s overall industrial production index hit 115.38 in September, up 15.48% from a year earlier, while the manufacturing index surged 16.9% to 116.51, per CNA. Both figures are the highest on record for the month and mark 19 straight months of growth.
MOEA Statistics Department Deputy Director Chen Yu-fang (陳玉芳) explained that demand for AI, high-performance computing, and cloud services continues to power the information and electronics sector. However, she noted that sluggish orders and conservative client sentiment in traditional industries have dampened some of the overall gains.
In the information and electronics sector, output of electronic components jumped 24.39% year-on-year, with integrated circuits soaring 26.53%. Production of computer, electronic, and optical products also rose 26.28%, extending its growth streak to 21 consecutive months.
Traditional industries, by contrast, remain under pressure from global uncertainty and China’s overcapacity. Output in the automotive and parts sector fell 7.82%, and basic metals declined 2.63%, though panel and chemical materials production rebounded to positive growth.
Chen said that while large-size panel demand has weakened, small and medium-size panel production has increased as manufacturers adjust output to meet shifting customer needs. She added that ongoing global uncertainty means future performance will depend on demand during Western peak seasons and China’s National Day holiday period.
The machinery and equipment sector grew 10.71% year-on-year, buoyed by expansion plans among leading semiconductor firms. The chemical materials and fertilizers segment edged up 0.44%, driven by rising semiconductor demand for polished silicon wafers after six straight months of decline.
Looking ahead, the ministry projects the October manufacturing index to range between 114.22 and 118.22, reflecting 13.6% to 17.6% annual growth. Chen said that if the index averages at least 71.1 over the final three months, the annual figure will hit a record high.
